Question

Suppose that you took out a loan with a principal of $24,680. To pay off the principal and the interest, you made quarterly payments of $1,382 for six years. Furthermore, you paid a service charge of $396. What was your total finance charge?

a.
$396
b.
$8,488
c.
$8,884
d.
$8,292

Answer 1

finance charge is c.$8,884.

Step-by-step explanation:

Answer 2

The solution to the problem is as follows:

$1382*24 (4 payments per year * 6 years)=$33,168+$396=$33,564 (Total)

$33,564-$24,680=$8,884

Therefore the total finance charge is c.$8,884.

I hope my answer has come to your help. God bless and have a nice day ahead!